The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-05-26
RICHMOND, VA May Il.

~ l,oS3 oil
J RICHMOND, VA May H. 1857
SIR Ed,card Thornton, G. c. b.. Chairman
Council Foreign Bo9dholderS:
Dear Sir,-This sub committee, repre-
} senting the committee on the part of the
State of Virginia, was directed by said
committee to advise you gentlemen repre-
} senting the council OF foreign bondnodeIs
that IL cannot recommend To the General
Assembly Of Virginia the acceptance OF
your proposition. as contained in your com
lnuncatiOn and memorandum of to-day:
indeed. it is the sense of the joint commit
tee that it is useless to report the propo-
siti0n: because
First. Taking the indie btedness of the
State inclusive of the bonds held by schools
and colleges, and exclusive of the boldS
held by the State, other than the literary
fund, and after deducting two thirds.
V1rglnlaS LortiOn of the debt due the
United States, we find, by applying figures
to your proposition, that the whoe debt
OF Virginia for which we would nave to
| provide interest Annually. in round num-
ber5, to the sum OF SS32, 000,000, the annual
interest upon which at the rate YOU name,
would equal the sum OF $925,00N We SEE
no way by which the State. in her impov
erlshed condition. can pay such d large
| annual interest: to attempt to do SO would
be worse than folly. In the first place Ii
would require all increase of taxes or a
reduction of the amount Unconstitutional
minimum) which the State now supplies
for the maintenance of her free schools
The committee can do neither; but permit
us to say. that if we felt so Inclined a
settlement requiring the increase of h.
one, or the reduction Of the other, woa,d
be rejected by the people: in the secoi d
place, if we neither increase taxes nor le-
duce our appropriations to free scioo s,
there would almost Immediately b. IL d.
fault OF the payment OF the Interest agreed |
upon; and let us remind you that these |
defaults. e., the States inability to meet |
her annually. accrueing interest, have been
the cause OF all legislation hostile to her
creditors.
Second. We fail to see how yen reduce the
principal OF the debt to 1913 600, 900 It is
true you offer to allow the State to reduce
some OF her obligations at an amount less
than their face value, but after this retluc
ton, by no calculation can we reduce :he
principal below $26 900. 900. or there ahouts |
We have conscientiously given you what
we believe to be our annual revenues APP
pllcable to the payment of interest on our
public debt. and again express an earnest |
desire to make a settlement within our
resources. and beg to submit the following
as an evidence of that desire
| and Ii. On your first two propositions
the joint committee consented to the rate
OF interest therein named-tO wit per
cent. on cOnsol bonds and q per cent. on
ten-forty bonds. on principal fixed in the |
fourth proposition OF this memorandum. |
III. AS to the third proposition the com
mittee could not see their way clear to ac
cPpt the funding of past due coupons It's |
therein suggested. and resolved to Offer in !
its place that $500.000 in cash be set |
aside to redeem past due coupons at Il G |
rate of so cents on the dollar as soon as
that sum can be realized from levenl es OF
other sources, and that all coupons matur
ing up to and including July /. 1887 be re-
deemed at so cents On the dollar, or re-
funded into Riddleberger bonds at the rate |
of so cents on the dollar, at the pleasure
of the State.
w. That the principal of the consol |
bonds be reduced Immediately to rs cents
on the dollar and that Of the ten-forties
to 63 cents on the dollar, that such re-
duced principal of the consols bear inter
est from July ]. 1887, at the rate of 3 per
cent, per annum, and that Of the tfn-for
ties at the rate of q per cent. per snnum,
and that the same shall be evidenced by
stamping in plain characters said reduced
lively. as they now exist
V. There will be no difficulty in arrang-
ing the sinking fund as suggested by you.
vi. That all other outstanding bonds be
funded under the Riddlep-rger bill, includ
ing interest from 1885 to uly /, 1887, at |
so cents on the dollar.
VII. That the bonds held by the Sil king |
Fund Commissioners either be cancelled |
or exchanged for the bonds to be funded |
under this agreement i'll Riddle g,i |
bonds.
VIII. This settlement by our ca'ctla- I
tion barely brings the debt within our |
revenues available for the payment Of an
nual interest ascertainfd by the closest |
collection of taxes. and the most econonl-
ical administration IF oar Government.
We are satisfied that a settlement made
upon a basis that would lot come within
these conditions. could not he carried
through the Legislature OF ratified by Il
people OF this State.
VI The details for carrying into effect a
settlement upon this basis, will be the sub
ject of neg citations between us.
We will thank you to furnish us with &
reply as early as possible.
Yours respectfully.
j. II. II. FIGGATT,
II. II. DOWNING,
Sub Committee.
REPLY OF JOINT COMMITTEE To THE LAST PRoPo-
srTIoN TABULArED FROM THE PRECEDING
MEMORANDUM.
COnsOlS ....,......... $40, 672 Gee
Coupons and interest on
coupons and ten forties. 900
Less rendered. .,........... loi,uUU
81 26oooo
Less...... ..........l ,O0o,OGC
900
-, - ~ =, -; -; Ao'o'oeo